Component funds are the basic building blocks of the Foundation. All named funds are created through a legal document called the “Declaration of Gift”. The “Declaration of Gift”:
- Is a two-party agreement between the Foundation and the donor or organization
- Details donor intent
- Directs the Foundation’s stewardship, now and in the future
Field of interest Funds provide grant dollars in certain areas such as health, education, economic development or the arts. This option offers the donor the advantage of choosing a field of charitable work that he/she cares about, without determining a specific nonprofit to support. For instance, the field of interest fund may be to support literacy in the county.
Designated Funds benefit one or more organizations. Designated Funds offer the donor the simplicity of choosing specific nonprofit organizations that the fund will support. If the donor has defined giving goals, this option helps achieve them by permanently supporting the nonprofits the donor determines when the fund is established.
Organizational endowments created by nonprofits for their own use and scholarship funds are also forms of designated funds.
Unrestricted Funds provide monies for grants and new programs. Unrestricted funds are those given to a community foundation by a donor with broad philanthropic interests but no specific recipient in mind. The donor gives the foundation the flexibility to invest in the community’s most pressing needs. Unrestricted funds allow community foundations to ensure that the organizations and projects that could really benefit from funding are given support.
Donor Advised Funds are designed for donors that have differing interests. With a donor-advised fund, donors and their heirs can recommend grant recipients each year, allowing donor’s flexibility in supporting the causes they care about without the demands and costs of establishing a private foundation. Grants can be made at the suggestion of the donor. This option offers the most flexibility in the direction of each grant from your fund. You may decide to give to causes related to health and education today, but decide to support efforts for disaster recovery and social welfare in the community tomorrow. No matter what causes ignite your passion, you can support them all from your donor advised fund.
There are several requirements and stipulations for Donor Advised Funds that will be reviewed with the donor at the time the fund agreement is signed and approved.
Scholarship Funds are awards of financial aid for students to further their education.
If a donor restriction has become unnecessary, incapable of fulfillment or no longer is in the best interest of the Foundation, the Foundation may modify it through the variance power. Some examples include:
- A charity designated by the donor no longer exists
- A fund’s purpose no longer make sense
- A charity designated by the donor has become seriously dysfunctional
In every case the Foundation’s obligation is to distribute grants as closely as possible to the donor’s original intent.
Variance power is a win-win all around. It allows the Board to continue to honor donor wishes even as nonprofit organizations come and go, and to respond to changing community needs and priorities for future generations.
To establish a fund please call the Foundation at 937-544-8659.